Question

S

Alaskan Fisheries, Incorporated, processes salmon for various distributors and it uses the weighted-average meth-
costing system. The company has two processing departments-Cleaning and Packing. Data relating to pounds of
in the Cleaning Department during July are presented below:
Work in process inventory, July 1
Work in process inventory, July 31
Pounds of
Salmon
31,000
19,000
Equivalent units of production
Percent Completed
Labor and
Materials
Materials. Overhead
100%
100%
A total of 460,000 pounds of salmon were started into processing during July. All materials are added at the begin
in the Cleaning Department.
Required:
Compute the Cleaning Department's equivalent units of production for materials and for labor and overhead in the
59%
80%
Labor and
Overhead

Answer 1

The equivalent units of production for materials and labor and overhead in the Cleaning Department are 34,200 pounds and 42,210 pounds, respectively.

Step-by-step explanation:

To compute the equivalent units of production for materials and labor and overhead in the Cleaning Department, we need to calculate the equivalent units for each category separately.

For materials:

1. Equivalent units = Pounds of completed units + (Ending work in process inventory * Percent completed)
2. = 19,000 + (19,000 * 80%)
3. = 19,000 + 15,200
4. = 34,200 pounds

For labor and overhead:

1. Equivalent units = Pounds of completed units + (Ending work in process inventory * Percent completed)
2. = 31,000 + (19,000 * 59%)
3. = 31,000 + 11,210
4. = 42,210 pounds

Therefore, the equivalent units of production for materials and labor and overhead in the Cleaning Department are:

Materials: 34,200 pounds

Labor and Overhead: 42,210 pounds